Hooray! A Decent Day At Last

I was beginning to wonder if I'd lost the knack of trading the greyhounds. Since last Friday my trading these markets has been particularly poor with daily results of £9.07, £7.80, -£3.57, £0.90, £10.57 and £5.04. Granted, I haven't done as much trading as I normally would this week, but that's more to do with a crisis of confidence rather than lack of opportunity.

After my skiing trip on Wednesday, yesterday was the first day I had free to trade all day. For the first time for a while, I felt a bit more comfortable with what I was doing, even though I was finding things slow and difficult. I had built up a half decent profit when Betfair decided to switch off some of their API servers resulting in response times some 4-5 fold greater than normal. I stopped at that point before I got caught big time.

I resumed again at 6:00pm and found the API working as normal, but I lost £8 on the first race I entered and switched everything off in disgust while I still had a fiver to my name.

Today, looked like continuing the trend of poor trading. After the first hour, I was down over £5 and on the verge of giving up. Thankfully, I persevered and slowly turned things around so that, by lunchtime, I was £15 in profit.

My trading throughout the day continued to improve until 9:00pm when I stopped after passing the £40 mark for the day. The first decent profit I've made on the dogs for over a week. Not before time I hasten to add.

I traded in 65 races today achieving a profit of £43.27. I still made far too many mistakes as the 16 losing races indicate. Total value of losing trades today was £17.28, which is far too high with almost half of that coming in the first hour.

I haven't done any soccer correct score trading since I got myself in a mess a week ago. I still haven't decided what I'm going to do with that as yet. In my past couple of attempts, I cannot say I've been confident or comfortable with what I've been doing. However, I do not want to give up on it just yet as it clearly has potential and I really must expand my horizons so that I am not solely reliant on the dogs.

As a matter of interest, I thought I'd let you see the figures Betfair have produced for my premium charge for last week. You can get to your own statement via the Premium Charge Portal, as long as you are logged into Betfair at the time.


I'm currently working my way through my 'allowance' so haven't lost any money to this money grabbing scheme as yet. However, the figures show that I would have incurred £24.72 in premium charges. This is of course over and above the £13.70 I'd already paid in commission.

So, on a gross profit of £166.72 for last week, I'd have paid 23.04% in charges.

This is really worrying as a premium charge of such a size represents the profit from a full day trading - on a good day. You've got to wonder if it's worth the effort for us small scale traders.

To quote the Betfair site:
"In addition to the other charges detailed above, a small number (less than 0.5%) of our most successful customers will incur Premium Charges."

Am I really to believe that I am in the top 0.5% of Betfair customers?

6 comments:

Mark Iverson said...

It's absolutely ridiculous Alistair.

This charge will affect many more than just 0.5% in the first year.

All the best,

Mark

Iranian Giraffe said...

Hi Ali,

well I thought instead for a change I would post on here instead of being in the chat room.
Does Gross not mean "before deductions" in economics??, because I'm rarely sure it does. If thats the case then why on earth are they not including the "commission paid" in the "total charges", how can it be "total charges" if not all the "charges" are in the "total".
I must admit I've not really checked the premium charge info in depth yet as my matched betting has kept me well above the 20% charges but I don't see why actual "commission paid" are not taken into account on the charge as they clearly are not which makes a total farce of the "total charge" amount. going by your info for that week you have actually paid something like 13.3% and not the 5.17% that they claim.
I can't believe it's an error which they haven't noticed so I can only think it's another way of fleecing even more money from people making up another rule for rules which they have already just made up to benefit them.

Alistair said...

Hi guys,

It seems pointless going on about the premium charge almost 6 months after its introduction. Yet it is clear, there is still much confusion about it. For that reason, those that are, or potentially, affected by it should continue to periodically bring attention to it.

I do not think there can be any doubt that Betfair have made it deliberately confusing and misleading. But it is clear that those hit by this charge cannot afford to move elsewhere otherwise they would have done so by now.

It is equally clear that the figure of 0.5% is so ridiculous that it defies believe. If it is true, and I'm part of that small minority, then the remaining 99.5% must be utterly useless at what they do. So much so in fact that I'd advise them to pack it in before they lose everything.

At my current rate, I guess I have roughly 15-20 weeks to use up my 'allowance' at which point I'll have to seriously think about whether it's worth my time.

Alistair

Anonymous said...

It is a ridiculous amount of money for those, like us (I pay the dreaded charge), who toil as long and hard as any to make a bit of cash.
To make it worse, as I'm thinking of switching away from the horses to the tennis (for stress purposes!), I had a look at the tennis markets on Betdaq and there was no money whatsoever. The successful tennis traders need so much liquidity they can't afford to move.
Bummer.

Rick Ford said...

Just to join the premium charge debate I was told by someone who works at Betfair that the charge was put in place to stop people cashing in from Arbitrage BOTS which sap out the liquidity in early markets and they never lose.

He also said to me the charge is here temporarily and it might stop if they can find another way to stop these BOTS, fingers crossed hey?

Alistair said...

Rick, if that's true, that's an astonishing admission to make!

I'd be very surprised if the premium charge was temporary. It would be a climbdown of monumental proportions for them to abandon it after all the effort they've put behind it.

Of course, I think all traders would agree that it is ill conceived, badly implemented and totally unfair, not to mention questionable both legally and morally. However, it's here, and I cannot see it disappearing anytime soon.

It would be nice though.

Alistair